Scholastic has announced in a very covert manner that they are closing the Storia eBook store, as we know it, and transitioning it into STORIA SCHOOL EDITION and Family Streaming Edition. Instead of selling eBooks directly, they intend on adopting the uber popular Netflix for eBooks ideology. What happens to the hundreds of thousands of books already purchased? How does this new subscription system actually work and is it a viable business model?
Storia was Scholastics catch all system for purchasing eBooks on an individual basis. Parents, schools and kids would use the reading app for iOS, Android and the Kindle Fire to purchase books on-demand. In order to preserve your existing content, you have to open the titles by October 2014 or they will be unable to be read them.
You can think of Storia eBooks as dedicated apps, similar to how digital magazines work on the Apple newsstand. If these apps require an update between now and August 2015, they will likely break the book. This is the primarily reason why Scholastic has stealthy offered a refund policy for any books purchased via the Storia platform. They aren’t really doing a good job making this publicly known, as there is a simple one paragraph blurb on their main website about it.
Scholastic confirmed with Good e-Reader that “Our customer service lines are fielding calls, facilitating refunds and assisting schools in transitioning from individual books purchased by teachers to streaming for an entire school. The advantage is easier access and that each ebooks is accessible by more than one child at a time (rather than buying multiple copies) which is a huge plus for the classroom; teachers are also learning about the new student progress tracking features and they like them.”
Scholastic Storia for Education was first announced in April 2014 and will be formally launched at the beginning of September. It is a system that has 2,000 eBooks and will be delivered in a subscription format. The exact rate that schools pay are dependant upon the size of the student body and how much content they intend on downloading. I have heard that the average rate is between $1,500 and $2,000 per year. This system might be beneficial for schools as they can deliver multiple copies of the same book, without having to buy 30 individual copies.
It will likely be awhile before parents and children themselves can opt into the new subscription system. Scholastic has confirmed with Good e-Reader that they are developing a Family Streaming service that is currently in the Research and Development stage. Therefore the sales structure has not been announced as single title or subscription or both. There has been no ETA given for the official launch, but likely we will not hear about until next year. The main priority is to get the new Education system up and running.
Basically, what Scholastic is doing is shuttering selling eBooks directly to schools, parents and kids. Instead, they are adopting a more financially lucrative subscription based system, which alienates families. Why have a parent buy a few titles a year, when you can have steady income generated from hundreds of schools in the US all paying a few thousand dollars a year.
My biggest concern with Storia technology being integrated into Storia for Education is awareness. Parents and Kids may casually use the app on their tablet or phone to buy and read books. They certainly don’t look at the official Storia website or read publishing geared websites like Good e-Reader. What happens when a new 39 Clues book is announced and little Jimmy is a huge fan of the series. They open the Storia app to try and buy it, only to realize all singular title purchases have been suspended and some of their past purchases don’t even work anymore.. Parents will likely be wondering why some titles work and some don’t and blame their device. In the end, they might decide that Amazon, Barnes and Noble or Kobo might be the more viable method to purchase future titles. After all, they don’t change their entire eBook selling paradigm at the drop of a hat.